Pakistan may soon be in a position to claim a share in the global flower trade, which is at present in excess of $5 billion annually, and increasing every year. In recent years, China, India, Kenya, Columbia and Israel have done exceedingly well in this field and are among the leading exporters now.
Since not much emphasis had been given in Pakistan to this lucrative business in the past, the Pakistan Horticulture Development and Export Board (PHDEB) has taken the initiative to promote this important area of horticulture with the objective of making 'Floriculture' exports as one of the sunshine sectors of the country.
With this objective in mind, the PHDEB would establish 'Floriculture Common Facility Farms' (FCFF) in each province to enable the farmers grow export quality flowers on large scale.
Growing flowers and selling them in the international market is at the moment a huge industry with billions of dollar sales and employing millions of people world-wide. However, to support this international industry, it is necessary to have open trade borders and the closing down of trade barriers.
Cultivation under controlled environment of greenhouses is recommended to overcome weather conditions and to provide most suitable growing environment for top quality and high yield. Greenhouse cultivation is an expensive medium and can be out of reach of individual farmers. Under FCFF, the cost of each farmer would be substantially low, as key facilities would be provided by the zone. Punjab would be taken as a model, and later replicated, with slight modifications as per geographical conditions of each province.
It has been proposed that the size of the first FCFF should be 30 hectares (75 acres). Each farm, within the zone, would be of two hectares (1.5 hectare greenhouse + 0.5 hectare open space). Total investment of FCFF shall be in the range of Rs 80 million. This would include development land, provision of common facilities like drip irrigation, cold storage, packinghouse, etc, on nominal charges. Sale and marketing would also be the responsibility of FCFF, which, after deduction of expenses and nominal margin, would pass on the balance to the individual units in shape of price.
Profit earned by FCFF shall be used to develop the zone, provide technical training to farmers through local and foreign consultants, a modern laboratory and on marketing. Internal Rate of Return (IRR) of the project is approximately 24 percent. The FCFF zone would be managed by a private limited company.
The flower trade world-wide is changing very rapidly. Many more flowers are needed year round for the fast developing impulse sales in the mass-market. These will have to be produced under the most competitive conditions. Many countries are getting into 'cut flower' production both for domestic consumption and for export. Each country has its own limitations in the form of logistics, which could dictate where the flowers are sold.
Looking at the international situation in the flora culture industry, Holland is market leader with about 65 percent of total sales of flowers and plants. Not only that, Holland is also market leader by supplying all kinds of young plant material, seed, equipment and they have a very high standard and updated with the latest trends and techniques.
Holland is also the middle point of the daily market in selling flowers and plants. The two big auctions 'Aalsmeer' and 'Flora Holland' which are operating five days a week, play a major role in the international selling of flowers and plants and what Wall Street in New York is for the International Financial World that are these auctions for the floral industry.
On these auctions, the daily world market prices are settled and in a few minutes people all over the world could follow this by high communication systems and latest techniques. In the last 40 years, Holland has created a big floral culture industry and now more than 100 countries are sending their flowers and plants to this market from where wholesalers send them to customers all over the globe. These wholesalers are able to supply each customer with a wide range of products. Every day, millions of different flowers and plants in all kind of colours are available for the international buyers and all according to international standards which took about 40 years to develop and at the moment every body in the world are following these international standards.
These international standards are providing customers all over the world with guaranteed fresh product. By modern cooling systems and logistics systems people all over the world, order in the morning and the same day or early morning next day flowers arrive fresh and healthy.